Tesla stock tumbles as concerns mount
Investors are worried about the future of the company.
Tesla's rocky 2019 continued on Monday with the automaker's stock price falling briefly below the $200 per share mark for the first time since 2016.
Tesla's stock price has been in free fall this month, with investor not only worried about the company's cash-burn rate, but also a recent report from the NTSB that found the automaker's Autopilot system was engaged at the time of a fatal crash involving a Model 3 sedan.
Tesla's stock is down 39 percent year to date, with a large chunk of that decline coming after the automaker went back to the well for another round of financing on May 2. In all Tesla took in $2.7 billion in new capital, but the company warned at its current burn rate, that cash stockpile would only last for 10 months.
Investors were further spooked when Tesla CEO Elon Musk issued an order to employees to keep a tight lid on expenses. That decree came down shortly after Tesla posted a first quarter loss in excess of $700 million.
Those cash issues have been compounded by questions over the safety of Tesla's Autopilot system, which Musk has touted as a key advantage for the automaker. But after the March 1 crash of a Model 3 using Autopilot, some analysts are questioning Tesla's ability to bring a fully autonomous car to market by next year, as Musk has previously stated.
"We believe that the NTSB report could cast doubt on TSLA's self-driving capabilities, which have been highly touted by Mr. Musk," Needham analyst Rajvindra Gill wrote in a note to clients on Monday, according to Automotive News.
Tesla's stock managed a small rally by market's close, but shares were still down 3.8 percent to $203.03.